Advocacy groups say utility regulators who praised rate freeze before hearing violated state rules

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19 hours ago

Georgia Public Service Commission Chairman Jason Shaw (right) and Commissioner Lauren 'Bubba' McDonald joined Gov. Brian Kemp for a May press conference to tout Georgia Power's proposed rate freeze. Stanley Dunlap/Georgia Recorder
Three elected state regulators are being asked to recuse themselves from voting on a proposed agreement to freeze Georgia Power's rates over allegations that they violated state rules by publicly endorsing the proposal before an upcoming hearing.
Advocacy groups filed a complaint Friday accusing Georgia Public Service Commission Chairman Jason Shaw, Commissioner Lauren 'Bubba' McDonald and Commissioner Tim Echols of showing bias by supporting a proposal between commission staff and Georgia Power that would freeze the base electric rates from 2026 to 2028.
Shaw and McDonald are accused of violating state regulations by publicly endorsing the proposed three-year rate freeze during Gov. Brian Kemp's May press conference, which promoted the proposal.
According to the complaint, state rules require commissioners to reserve their opinions on the merits of a matter until they have heard all the facts following a hearing.
The four nonprofits behind the complaint – Georgians for Affordable Energy, Georgia Conservation Voters, Center for a Sustainable Coast, and Georgia Women's Action for New Directions – recommend that the commission cancel or deny the proposed rate freeze, which would result in a Georgia Power rate case later this year. Another option they floated would be to have an administrative law judge appointed to rule on the base rate plan.
Patty Durand, founder of Georgians for Affordable Energy, said the commission should deny the rate freeze plan and instead require Georgia Power to hold its normal three-year rate case this fall that she said could result in ratepayers paying lower utility bills. That would also give regulators a chance to review the utility's commission-approved profit margin, which is currently set at 11.9%.
'Georgia Power's three-year rate freeze is a Trojan horse and absolutely devastating to Georgia Power ratepayers,' Durand said. 'They don't do this out of benevolence. They're a for-profit corporation always seeking to increase profits. This three-year rate freeze does that by locking in high profits through a return on equity that is far above industry norms and delivers $700 million in excess profits annually.'
The complaint also refers to a quote from Echols in a May 27 Atlanta Journal-Constitution article about the proposed rate freeze.
'Freezing the rates for three years is the best thing we can do for ratepayers right now, and I have advocated for that incessantly,' Echols said in the article while discussing discount utility programs for seniors and low-income ratepayers.
The three commissioners declined to comment on the pending complaint through a commission spokesperson.
At the May press conference, Shaw said that freezing rates for 'three years is a very big deal for our state, and it's good for Georgians.'
'At the end of the day, we're going to have an open and transparent process hearing of this agreement,' Shaw also said. 'We're going to have a chance over the next few weeks to meet with all the stakeholders. If anyone has concerns about this agreement, we're going to sit down as we learn more about it ourselves, and have that normal open dialog that we have at the PSC.'
Several consumer and environmental groups have expressed concerns regarding the timing of the rate freeze announcement and May press conference. Early voting for the June 17 primary election featuring two commission seats started a week after the press conference. Echols is the only commissioner named in the complaint who is up for reelection this year.
Early voting ends Friday as Democratic candidates Peter Hubbard, Robert Jones, Keisha Sean Waites and Daniel Blackman run for the Public Service Commission against appointed Republican Commissioner Fitz Johnson in the Nov. 4 general election.
Blackman is still fighting to stay on the ballot, though. A Fulton County Superior Court hearing is scheduled for Tuesday to hear Blackman's appeal after being disqualified for the Atlanta-based seat for failing to meet residency requirements.
Georgia voters will also decide this month who will win the GOP primary for the District 2 race that covers eastern Georgia as Republican Commissioner Tim Echols faces challenger Lee Muns. The winner of the District 2 Republican primary will face Savannah Democratic candidate Alicia M. Johnson in the general election.
The commission has come under fire for approving six Georgia Power rate hikes since late 2022 that have resulted in the typical household paying about $43 more per month on their electric bills.
And bills could still increase, even with the rate freeze. Next year, Georgia Power will file cases with the commission seeking to recoup storm damage and overrun fuel expenses from customers.
Georgia Power spokesman John Kraft said that the proposed agreement will balance the company's ability to provide affordable rates to customers while also supporting the growing demands from new customers.
State regulators commissioners also adopted a rule earlier this year that requires large-use customers to pay their full electric service costs through Georgia Power.
'We're always working to keep energy reliable and affordable for customers, and this stipulated agreement means no base rate increases for three years – that's great news for every customer,' Kraft said. 'Reaching this agreement was just the start of an open and transparent process, leading up to a vote by the Georgia PSC, which will include opportunities for comment and input from intervenors and the public.'
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